Now available on the ASX - BetaShares Australian Major Bank Hybrids Index ETF (ASX: BHYB) - BetaShares

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Now available on the ASX – BetaShares Australian Major Bank Hybrids Index ETF (ASX: BHYB)

The BetaShares Australian Major Bank Hybrids Index ETF (ASX: BHYB) is now available on the ASX.

BHYB offers cost-effective, passive exposure to a portfolio of hybrid securities issued by the four largest Australian banks.

Learn more about BHYB

BHYB provides investors with:

  • Attractive tax-efficient income
    BHYB pays income monthly at a rate expected to be significantly higher than cash and senior bonds, along with franking credits
  • Portfolio diversification
    Hybrids historically have exhibited low correlation to equities as well as generally shown defensive characteristics during market declines
  • High quality exposure
    To be eligible for inclusion in the index BHYB aims to track, a hybrid security must be issued by one of Australia’s ‘Big 4’ banks, and have a market capitalisation of at least $100 million
  • Cost-effective exposure
    BHYB aims to track the performance of an index, so there are no ‘active manager’ fees

Investing in a hybrid security fund, as opposed to individual hybrids, has several benefits, including:

• Portfolio diversification – Investing in a hybrid security fund offers diversified exposure to a spread of hybrids, rather than having to research and choose a couple of individual hybrids only

• Issuer diversification – Investing in a hybrid security fund means diversified exposure to a range of issuers

• Liquidity – May benefit from access to superior liquidity compared to directly held hybrids

Simplicity – Hybrids are quite complex securities with varying terms and conditions. Investing in a hybrid security fund may be suitable for investors who lack the expertise or time to evaluate whether than individual hybrid suits their investment objectives

Visit the BHYB fund page